Sunday, December 06, 2009

Oh look...

... no one could have seen this one coming, eh?
More than 1,000 investment bankers have quit Royal Bank of Scotland to join rival firms for guaranteed cash bonuses and big salary increases, according to banking sources.

The staff exodus, which has cut a swathe through the senior ranks of RBS, has been gathering pace since the government first ordered it to clamp down on bonuses this year.

Although they account for less than 5% of staff in RBS’s investment division, the traders and corporate financiers who have been lured away are estimated to have earned it between £600m and £700m last year — almost 8% of its 2008 income.

I believe that this was foreseen by those of us who are not complete and utter morons, i.e. by anyone who is not a politician.

Fucking hellski.

13 comments:

Anonymous said...

according to "an banker" commenting on this "story" on the inter-web, which he suspects is a lazy journalist on the ST running with a spoon fed sob-story, the figures suggest that each of the indispensable investment bankers that RBS have lost each made RBS somewhere around £600,000 - £700,000 in 2008, well says our banker friend, that level of "earnings" would be around that expected from an generally competent investment banker who could do more than tell left from right and up from down er, in the 1980's. His conclusion about the "stars" that RBS have lost because they have walked away in a hissy fit because they don't consider just their basic salary enough? "Well if they are only making 160% of the average 'earnings for the bank per employee' when ALL staff including those in IT, operations, HR, PR, security, audit and management are factored in ... "they'll none of them be missed".

Anonymous said...

Any good trader is surely risking their own money so that they enrich themselves.

By definition anyone being paid by someone else to trade is not top of the line talent.

Fuck em, they don't disserve a single penny of tax payers money.

pierro said...

so 95% of their staff remain then?

whats the problem?

theres plenty of people coming out of top universities who can fill the tiny gap

Mark said...

These are the "talent" responsible for an utter mega, hyper, cosmic clusterfuck, the only reason for which was their psychotic greed.

If there was any justice they would spend the rest of their days in jail.

The Great Simpleton said...

anon 12:19am - Investment banking and trading are not the same thing, they are not even remotely related.

pierro - Investment banking is a long term relationship business, yes the university graduates could do the job eventually, they need the senior people to guide them and to get clients.

The real problem isn't that these people go, it is that they can take their clients with them. If they do that then we have less chance of getting our money back. Does this mean we are being blackmailed? Yes, but that was always going to happen when we bailed them out in the first place.

We should have protected depositors and let them go to the wall in the first place. It would have been very very painful but we would have got through it and wouldn't be faced with this dilemma now.

commentor said...

Replace them with school kids or random-number generating computer programs.

Either way they'll perform better and cost a lot less.

The Great Simpleton said...

Replace them with school kids or random-number generating computer programs.

Either way they'll perform better and cost a lot less.


That's right. Those kids and random number generators will be far better at deciding if a £1.5Bn loan to a telecoms operator in Spain is a worthwhile invetsment. They'll also draw up better terms covenants and repayment schedules for the loan,.

Investment bankers are some of the most obnoxious and arrogant people it has ever been my misfortune to work alongside, but that doesn't mean they aren't necessary.

PS The example given above is from a real project I worked on as an engineer in the late 90's.

Anonymous said...

The traders will often take their (far lower paid) assistants with them, and if the latter are included (which they often are when people talk about "traders") then that will lower the revenue per head.

Anonymous said...

DK,

Have you deleted some of the comments on previous posts (eg. Gold - Always Believe in your soul), or have the comments been deleted by the poster himself?

Dave said...

Off Topic but-

How many limos have the great and good ordered in Copenhagen this week?

http://wattsupwiththat.com/2009/12/07/december-7th-2009-a-day-that-will-live-in-hypocrisy/#more-13815

Shug Niggurath said...

"i.e. by anyone who is not a politician"

Or a leftie.

Maturecheese said...

There's a difference between being well paid for a highly sought after skill, and decadent greed which is what I see when I look at the investment bankers. Also what do a lot of these immensely paid bonus laden oiks do with their loads of money, feed the property bubble. which is just what we don't need.

chris said...

Oh well. The bank was bankrupt so it is good that people are leaving, especially if they are willing to forgo any redundancy packages. The government should be winding it down rather than trying to run it. The longer they keep it going the more we loose. Just sell any remaining profitable bits off to whomever will buy and we are done.